Switzerland Authorities Impose Anti-Money Laundering Policies on Crypto

BeInCrypto –

In an effort to combat money laundering, Swiss authorities are seeking to limit the transaction amount threshold for cryptocurrency transactions to 1000 Swiss francs, after which identity of the party involved in the transaction is required.

The Swiss Financial Market Supervisory Authority (FINMA), which serves to protect all bank users, policyholders and investors from fraudulent service providers, is making it compulsory for digital asset providers to take greater measures to ensure that their platforms are not used for criminal purposes. The regulatory body, via a letter from Christoph Kluser, who supervises the parabanking system, would like to see further measures taken as part of a wider effort to combat money laundering and terrorism funding. Recently, Switzerland has seen multiple money laundering cases arise recently, including two graft scandals, the Venezuelan PDVSA, and 1MDB, and has sought to revise a 24-year-old law to address some of the vulnerabilities that have allowed money laundering to thrive.

Cryptocurrencies appear to pose an additional risk, with FINMA recently denying Bitcoin Suisse, a crypto broker, a banking license due to concerns over money laundering. FINMA considered the money laundering defense mechanisms of Bitcoin Suisse as having indications of weaknesses.

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